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The Automotive ADAS Aftermarket market size is forecast to increase by USD 4.18 billion, at a CAGR of 12.15% between 2023 and 2028. The market is experiencing positive growth driven by several key factors. Declining sensor prices have made advanced driver assistance systems more accessible to consumers, prompting increased adoption. Additionally, heightened consumer awareness and prioritization of automotive safety have fueled the demand for aftermarket ADAS solutions. Moreover, stringent regulations mandating the integration of safety technologies in vehicles have accelerated the market expansion, as automakers and consumers alike seek compliance and enhanced safety features.
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The market is witnessing exponential growth driven by the increasing demand for advanced safety features in vehicles. Radar, LiDAR, and high-definition cameras are integrated with software to offer sophisticated sensor fusion methods for enhanced vehicle automation. These aftermarket solutions include automated emergency braking, adaptive cruise control, and drowsiness monitoring systems, ensuring road safety. Night vision and road sign recognition systems further augment driving assistance. With a focus on electrification and connectivity, automakers are adhering to stringent regulatory requirements and crash test ratings. V2V communication and multifunctional sensors contribute to the evolution of safer and more connected vehicles globally. Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage. Advanced driver assistance system (ADAS) enhance vehicle safety by utilizing the Sensor fusion method in autonomous emergency braking systems and adaptive cruise control systems.
A decline in sensor prices is the key factor driving the growth of the global market. Economies of scale play a crucial role in the market to leverage the use of technology to maximize customers. This allowed the automotive original equipment manufacturers (OEMs) to reduce the overall cost of infotainment systems used in vehicles, to further penetrate the market. Due to the rise in the application of sensors in the automotive industry, the price of sensors such as radars and cameras is declining continuously. The reduced pricing is allowing aftermarket players to develop cost-effective ADAS technologies for customers. This is becoming an important driver for the rising demand for these products
Additionally, when any technology is adopted in consumer electronics, its volume rises and the prices are reduced in the market, which is advantageous for the automotive industry. Moreover, radar sensors are another key component in the market. The products showed a reduction in their prices and are currently priced in the range of USD 50 to USD 200. The low prices of cameras and radar sensors are making these products affordable to owners of old vehicles. Hence, the decline in sensor prices will boost the growth of the global market during the forecast period.
The growing development of aftermarket ADAS for CVs is the key trend driving the growth of the global market. Automotive companies are focused on understanding customer needs and delivering personalized solutions in a fully connected environment. AI technology is gaining popularity in ADAS as demand rises to emulate human brain functions. AI-based ADAS solution continuously learns through experience, proportionally enhancing their ability to detect and recognize surroundings. Therefore, AI-based ADAS can recognize and detect multiple objects around the vehicle. In addition, system power consumption is reduced, shortening ADAS development time. Thus, well-known ADAS manufacturers are working on developing AI-based solutions.
Moreover, well-known providers in the market have recently launched AI-based ADAS solutions to market. AI capabilities enhance NVIDIA DRIVE AutoPilot's object detection and recognition capabilities. For instance, ZF Friedrichshafen and Continental announced that they would start the production of ADAS solutions based on NVIDIA DRIVE AutoPilot in 2020. Hence, the rising development of aftermarket ADAS for CVs will boost the growth of the global market during the forecast period.
The adoption of active ADAS technologies by OEMs is the key challenge for the growth of the market. The aftermarket adoption of ADAS is limited to passive systems that provide just alerts or warnings to drivers. The main reason for this is the low cost of passive systems. Although, automotive original equipment manufacturers (OEMs) are not limiting their offerings to passive systems as the adoption of advanced ADAS technologies such as adaptive cruise control (ACC), and advanced emergency braking system (AEBS) has been rising in large-segment vehicles. This has posed a significant technology gap between original equipment manufacturer offerings and aftermarket offerings of ADAS. This is a challenge for the growth of the market in focus.
Furthermore, the need for active ADAS technology adoption in the market is also important for increasing revenue in the global market, as passive systems will experience price declines in the future. Hence, the adoption of active ADAS technology by original equipment manufacturers (OEMs) will impede the growth of the global market during the forecast period.
The market forecasting report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth analysis strategies.
Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Brandmotion LLC: The company offers automotive ADAS aftermarket products such as ADAS 1100.
The market research and growth report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The market report extensively covers market segmentation by technology (passive park assists, FCWS and LDWS, and others), vehicle type (passenger vehicles and commercial vehicles), and geography (North America, Europe, APAC, Middle East and Africa, and South America). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021. The technology segment of the market is driven by advancements in automated vehicles, including sensor fusion methods for enhanced accuracy. Key systems like road sign recognition, autonomous emergency braking, and adaptive cruise control contribute to the rise of self-driving automobiles. The integration of ultrasonic sensors improves detection capabilities, ensuring advanced safety features are optimized. Additionally, the market is influenced by the ongoing electrification of vehicles, which further augments the demand for these solutions.
The passive park assist segment is estimated to witness significant growth during the forecast period. This segment includes rear parking sensors, reversing cameras, and rear cross-traffic alerts. Passive parking assist technology is in high demand in the aftermarket as customers seek simple, cost-effective solutions for lower-spec and older model vehicles. Continuous reduction in prices of sensors, cameras, and displays is also an important factor for the growing adoption of passive systems in the market.
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The passive park assist segment was the largest segment and was valued at USD 2.51 billion in 2018. In developed countries like the US, the introduction of various regulations has increased the popularity of rear view cameras in the aftermarket. In addition, the rear cross-traffic warning system assists drivers by alerting them of approaching vehicles and pedestrians when reversing from a parking space. In addition to blind spot monitoring, well-known vendors also offer rear cross-traffic alert systems in the market. This is because both are complementary ADAS technologies. Hence, all such factors will boost the growth of the passive part assists segment in the global market during the forecast period.
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APAC is estimated to contribute 40% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. The US was the key contributor to the to the market in North America in 2022. The country is witnessing the increasing aftermarket demand for ADAS technologies, due to the strong presence of prominent market players and a growth in consumer awareness about ADAS. Consumer awareness about ADAS is high in North America as most of the ADAS technologies are becoming standard in new vehicles launched in the region. Moreover, the region has the existence of a dedicated network that encourages consumer awareness about safety systems such as ADAS. The participation of aftermarket ADAS manufacturers are rising continuously, which boosts the growth of the market in North America during the forecast period.
The market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Million" for the period 2024-2028, as well as historical data from 2018 - 2022 for the following segments.
The automotive ADAS market is experiencing rapid evolution with cutting-edge technologies like sensor fusion methods and autonomous emergency braking systems enhancing vehicle safety. Adaptive cruise control systems and autonomous driving features contribute to efficient driving experiences. However, challenges persist, including lack of adequate infrastructure and integration hurdles. The demand for reliable data delivery and real-time decision-making drives advancements in communication networks and autonomous vehicle technology. Collaborative efforts among automotive industry stakeholders and infrastructure providers are essential for ensuring safety assessment programs and standardized infrastructure. As ADAS integration becomes more prevalent, premium vehicles are expected to lead the market growth, offering efficient driver assistance features at competitive prices. Ecosystem mapping, design, validation, and manufacturing support are crucial for the development of advanced ADAS systems and components, including sensors, controllers, and power electronics.
Market Scope |
|
Report Coverage |
Details |
Page number |
176 |
Base year |
2023 |
Historic period |
2018 - 2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 12.15% |
Market growth 2024-2028 |
USD 4.18 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
10.61 |
Regional analysis |
North America, Europe, APAC, Middle East and Africa, and South America |
Performing market contribution |
APAC at 40% |
Key countries |
US, Germany, China, France, and Japan |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
BorgWarner Inc., Brandmotion LLC, Continental AG, CUB ELECPARTS Inc., Garmin Ltd., Gentex Corp., HELLA GmbH and Co. KGaA, Intel Corp., Information Technologies Institute Intellias LLC, Knorr Bremse AG, MINIEYE, Robert Bosch GmbH, Samsung Electronics Co. Ltd., Sasken Technologies Ltd., Solera Holdings LLC, TomTom NV, Valeo SA, Veoneer Inc., VOXX International Corp., and ZF Friedrichshafen AG |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID 19 impact and recovery analysis and future consumer dynamics, Market condition analysis for market forecast period |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Technology
7 Market Segmentation by Vehicle Type
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
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